Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › TX-UK – IHT / CGT of gifted assets between 1-7 years.
- This topic has 1 reply, 2 voices, and was last updated 3 weeks ago by JillyB.
- February 26, 2023 at 9:37 pm #679656Edward1kParticipant
- Topics: 1
- Replies: 0
Thank you for the lectures! Only question i have with regard to tax planning is:
You mentioned how only IHT will be subject if the asset is included in the chargeable estate on death.
You also mentioned how only CGT will be subject to assets chargeable after death.
But i don’t believe you mentioned whether gifted assets will be subject to CGT if gifted during lifetime but less than 7 years ago. This is surely important as lifetime transfers would be significantly weakened if you coulf potentially be subject to 100% IHT (Gifted less than 3 years ago) & CGT as the asset was gifted during their lifetime.February 27, 2023 at 11:14 am #679700JillyBModerator
- Topics: 0
- Replies: 273
IHt is chargeable on all assets in the estate and there is no CGT on death, nor is there CGT after a person dies.
IHT will always be payable before CGT if the asset is chargeable to both. so if its a CLT = IHT due so automatically get gift relief for CGT
Be careful not to mix the two taxes up.
- You must be logged in to reply to this topic.